Dubai is popularly known as ‘The City Of Gold’. This city plays a significant role in shaping the gold markets across the gold. Dubai is known for its tax free policies which attracts buyers and ivestors from around the world. India’s gold market is totally associated with cultural traditions is closely tied to global trends. This also includes Dubai, here’s what the Dubai market’s Influence on India’s Gold rates.
Dubai’s gold prices are often comparatively less due to the absence of taxes and duties. But in India, Import duties and GST has a significant impact on gold rates. Dubai offers 24 Karat gold at a price, that India will have higher price due to the additional costs like import duties and this is how the prices are higher in India.
Other than many countries, Dubai is more affordable to buy gold. Dubai has reported a huge amount of 25% profit increase in the last seven months. This is due to the people across countries. To escape taxes and hefty price tags, People buy gold from Dubai often. This increased the demand and the profits are multiplied.
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Despite the huge rise in profits, Dubai is now considering to lower the price of gold. Prithviraj Kothari, Chairman of the India Bullion Jewelers Association (IBJA) siad, ”If gold prices continue to rise, demand could drop by as much as 30 per cent. Customers are finding it increasingly difficult to buy gold at these inflated rates, especially with the upcoming wedding season.”
This situation is already on India and various other countries. Despite the cultural traditions and wedding seasons, the sales of gold have dropped significantly. Many Indians expressed their concern over their limited budgets, which are being stretched thin due to the skyrocketing gold prices. Indians generally buy large quantities of gold for weddings, but now, The story is entirely different.
Analysing and understanding the after effects of this gold high price like India, China and Singapore etc. Dubai officials decided to drop the price of gold to save the demand of gold in the market.
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